Traton Financial Services revenue jumps 21%
Incoming unit orders rose 44.2% YoY in Q2
The financing arm of commercial vehicle OEM Traton Group benefited from increased unit sales in the second quarter as the freight industry continues to show signs of recovery.
Traton Financial Services‘ revenue increased 20.7% year over year in Q2 to 642 million euros ($730.6 million), and its operating profit jumped 25.6% YoY to $55.8 million, according to its July 23 earnings release.
The German OEM captive expanded its insurance offerings and its geographic footprint in Q2, most recently bringing subsidiary MAN Financial Services to the Norway market, Chief Executive Christian Levin said during Traton Group’s July 23 earnings call.
Financing growth contributed to higher sales revenue, Levin said, rising 4.1% YoY to $13.4 billion.
Traton Group also reported a 3.7% YoY increase in unit sales to 82,925, and incoming orders surged 44.2% YoY to 94,169 units.
The results reflect the freight industry’s continued recovery from its yearslong recession, Levin said.
However, the company is concerned about the U.S. economy over the long term, especially when replacement demand begins to wane, he said, highlighting “a lot of smaller companies going into Chapter 11 bankruptcy or just stopping business because the transport volumes are not increasing as the GDP growth would indicate.”
In the meantime, steady demand from larger fleets and experienced operators remain as tailwinds for the company and industry overall, Levin said.
“The ones who are better in planning are doing more of the order placement,” he said. “That in itself is not a bad thing.”
Editor’s note: All amounts have been converted to U.S. dollars.
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